Illinois Governor J.B. Pritzker signed two landmark cryptocurrency bills into law on Monday, using the occasion to deliver a sharp rebuke of former President Donald Trump’s approach to digital asset regulation. Pritzker accused the Trump administration of letting “Crypto Bros” write federal policy while his state enacts what he called “sensible consumer and investor protections.”
Two Bills: Digital Asset Protection and ATM Oversight
The first bill, SB1797 (Digital Asset and Consumer Protection Act), grants the Illinois Department of Financial and Professional Regulation (IDFPR) broad authority to oversee crypto businesses, including exchanges, custodians, and wallet providers. It mandates compliance with anti-money laundering standards and disclosure requirements. The second bill, SB2319 (Digital Asset Kiosk Act), imposes strict regulations on cryptocurrency ATMs, capping transaction fees at 18% and requiring operators to establish a fund for compensating fraud victims. Pritzker emphasized that these measures aim to create a “balanced environment for innovation while protecting Illinois residents from rising scams.” The governor, a 60-year-old billionaire heir to the Hyatt hotel fortune, noted that the state’s approach contrasts sharply with the federal laissez-faire attitude.
Blasting Trump: ‘Federal Policy Written by Industry Lobbyists’
Pritzker did not hold back his criticism of the Trump White House. “While the Trump administration lets crypto bros write federal policy, Illinois is putting in place smart safeguards for investors and consumers,” he said at the bill-signing ceremony. He specifically called out Trump’s decision to rescind the IRS’s “multi-signature broker rule,” which would have required decentralized exchanges to report transactions to the tax agency. Pritzker argued that the rollback prioritizes industry preferences over public interest, leaving consumers vulnerable to fraud. According to an official press release from Pritzker’s office: “The Trump administration is actively deregulating the crypto industry at a time when consumers are increasingly vulnerable to fraud. Federal digital asset legislation is largely being shaped by industry lobbying efforts.” The governor also hinted at conflicts of interest within the administration, given its close ties to crypto executives who have donated to Trump’s campaign.
Context and Impact: State-Level Regulation Fills Federal Void
The Illinois legislation comes amid a fragmented U.S. regulatory landscape for cryptocurrencies. With Congress deadlocked on comprehensive bills, states are taking independent action. Illinois — an economic hub in the Midwest — now joins states like New York (BitLicense) and California in imposing proactive oversight. Industry analysts believe the ATM fee cap could become a national template, while SB1797’s licensing requirements will force crypto firms to weigh compliance costs against market access. Pritzker, widely seen as a potential 2028 presidential candidate, is positioning himself as a pro-consumer alternative to Trump’s pro-industry stance. The move also highlights a growing partisan divide: Republican-led states such as Wyoming and Texas have opted for light-touch regulation to attract crypto businesses. Meanwhile, federal agencies under Trump have halted enforcement actions and withdrawn proposed rules, creating a vacuum that states are increasingly filling. Crypto advocacy groups criticized the Illinois bills as overly restrictive, warning they could drive businesses to more lenient jurisdictions. Consumer advocates, however, praised the laws as overdue protections against rampant crypto fraud, which cost Americans over $5 billion in 2025 according to the FTC.